After waiting so long, the streaming war has finally unleashed a bombshell! On Friday (December 5th), Netflix officially announced it would acquire Warner Bros. Discovery’s film and television production and streaming business for a staggering equity value of $72 billion (approximately HKD 561.6 billion). Including debts, the total enterprise value of the deal reaches an impressive $82.7 billion.
This century-defining acquisition, if it comes to pass, means that HBO, Harry Potter, the DC superhero universe (Batman, Superman), Game of Thrones, and other major IPs will all fall under Netflix’s umbrella, fundamentally reshaping the landscape of global entertainment. For Hong Kong viewers, it might truly be a game-changer, but the question remains: will it come at the cost of higher monthly fees? We’ll likely have an answer to that question soon.
Netflix acquires Warner Bros Get Ashore to establish a film studio.
The terms of this acquisition deal set the price for Warner Bros. shares at $27.75 each, which includes $23.25 in cash and approximately $4.50 in Netflix stock. This price represents a premium of over 121% compared to Warner’s closing price on September 10th, just before the acquisition rumors surfaced, showing that Netflix is truly willing to go all out to secure this lucrative asset. The entire deal is expected to wrap up within 12 to 18 months, but first, Warner Bros. needs to spin off its cable network business—including CNN, TNT, and Discovery—into a separate publicly traded company, a process that is anticipated to be completed by the third quarter of 2026.
Netflix Co-CEO Ted Sarandos excitedly stated during an investor call: “With classics like Warner Bros. boasts some of the finest entertainment content in the world, from classics like “Casablanca” to… (Casablanca) and Great Nation (Citizen Kane), alongside contemporary hits like Harry Potter and Friends, plus our own productions like Stranger Things and Squid Game, we are set to bring even more beloved content to audiences worldwide, helping to define the storytelling of the next century.” While this sounds appealing, the reality behind it is that Netflix has finally transitioned from Destroyer to A member of the establishment.—once upending the traditional Hollywood studio model, they are now purchasing one of the most iconic century-old studios.
Hollywood unions launch a full-scale strike: This merger must be stopped!
Despite the grandiose claims from Netflix and Warner Brothers’ management, Hollywood’s labor unions and industry insiders are rising up in opposition. On the very day the deal was announced, the Writers Guild of America (WGA) issued a strong statement condemning The world’s largest streaming platform is swallowing one of its biggest competitors, which is exactly the kind of scenario that antitrust laws aim to prevent.. The union warned that this merger will lead to job losses, wage reductions, and a deterioration of working conditions. Additionally, consumers will face higher subscription fees, while the variety and quantity of available content will actually decrease. Their conclusion is straightforward:
This merger must be blocked ! (呢單合併必須被阻止!)
The Directors Guild of America (DGA) along with the Teamsters have expressed their opposition, fearing that with Netflix controlling such a vast production and distribution resource, it would gain absolute bargaining power, potentially leading to a reduction in the compensation for creators and technicians. The Cinema United has went further to describe this deal as detrimental to global cinemas, worrying that Netflix may ultimately decrease the number of films released in theaters, further damaging an already struggling cinema business.
Even the President of the United States, Donald Trump, couldn’t resist voicing his opinion. While attending the Kennedy Center Honors on December 7, he revealed to reporters that he plans to personally review this transaction, stating that Netflix already holds a very big market share with a very large market share, and acquiring Warner would further increase this market share, which could be a problem according to him. While Trump praised Netflix and its CEO, Ted Sarandos, he clearly expressed concerns about the anti-competitive implications of this deal. Observers expect the U.S. Department of Justice’s antitrust division to conduct a very stringent review of this merger.
What Hong Kong viewers are most concerned about: Will HBO GO shut down? How much will the monthly fee increase?
What real impact does this acquisition have on us viewers in Hong Kong? Currently, Hong Kong users primarily watch HBO series through the HBO GO app or a subscription to Now TV. If this deal gets approved, HBO Max (and its overseas version HBO GO) will almost certainly be integrated into the Netflix platform. Netflix co-CEO Greg Peters has hinted that they will explore various Bundling Plan options, whether that means bundling HBO Max with Netflix or directly integrating the HBO content library into the Netflix app.
Looking on the bright side, we’ll soon be able to enjoy the super smooth and exceptionally designed app from Netflix to watch The Last of Us and The White Lotus, without having to endure that laggy, unstable HBO GO app anymore. But the reality is, to break even and manage massive operating costs, a price hike from Netflix seems almost inevitable. While Netflix claims to offer more affordable options through bundled services, the WGA union has already called out this narrative, warning that subscription fees will only skyrocket. Plus, with Netflix cracking down on Password Sharing and introducing ad-supported subscription plans, future pricing structures are bound to get increasingly complicated. So all you wire fans really need to keep a close eye on your wallets.
The deal is expected to be officially completed after the third quarter of 2026, and at that time whether HBO GO will officially say goodbye, how much Netflix’s subscription fee will increase, and whether there will be an ad-supported version of HBO’s content are all still uncertain. However, what is certain is that the era of streaming market A Hundred Flowers Bloom is approaching its end, giving way to a new landscape of oligopoly. To stay updated on the latest developments of this monumental acquisition, whether regulatory bodies will intervene, and its actual impact on users in Hong Kong, be sure to follow our ongoing reports at Unwire!
